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Thursday, April 18, 2024

IRS rejects more than 20,000 refund claims for pandemic-related tax credit

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Starting this week, ineligible taxpayers will start receiving copies of Letter 105 C for disallowed claims. Later this month, the IRS will unveil a “voluntary disclosure program” for taxpayers who wrongly claimed the credit. The agency is rejecting filings from entities that didn’t exist or didn’t have paid employees during the eligibility period.

“The action we are taking today is part of an initial set of steps in our compliance work in this area,” Werfel said. “More letters will be going out in the near future, including both disallowance letters and letters seeking the return of funds erroneously claimed and received.”

The announcement comes less than two months since the IRS unveiled a special withdrawal process for small businesses that wrongly claimed the credit to avoid repayment, interest and penalties.

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Chris Washington
Chris Washingtonhttps://whnynews.com
Chris Washington brings over 25 years of experience in financial journalism to WHNY News. A Schenectady native, Chris has a keen eye for business trends impacting upstate New York. His insightful reporting has earned him numerous accolades. Chris holds a degree in Economics from Syracuse University.
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